NEWTON, Mass.--(BUSINESS WIRE)--Office Properties Income Trust (Nasdaq: OPI) today announced that OPI’s Board of Trustees has reduced OPI’s regular quarterly cash distribution on its common shares to $0.01 per common share ($0.04 per share per year). OPI’s cash distribution on its common shares last quarter was $0.25 per common share ($1.00 per share per year) and the cash distribution on its common shares in Q1 2023 was $0.55 per common share ($2.20 per share per year).
Yael Duffy, President and Chief Operating Officer of OPI, made the following statement:
“Given the deterioration in market conditions since we last addressed our dividend rate in the first half of 2023, we believe it is prudent to further reduce the dividend to increase our liquidity and financial flexibility when addressing future leasing costs, capital expenditures and debt maturities. This new dividend rate will immediately increase OPI’s liquidity by approximately $47 million per year as well as increase liquidity by approximately $105 million per year as compared to the dividend rate paid in Q1 2023.”
The $0.01 per share distribution will be paid to OPI’s common shareholders of record as of the close of business on January 22, 2024 and distributed on or about February 15, 2024.
About Office Properties Income Trust
OPI is a national REIT focused on owning and leasing high quality office and mixed-use properties in select growth-oriented U.S. markets. As of September 30, 2023, approximately 64% of OPI's revenues were from investment grade rated tenants. OPI owned and leased 154 properties as of September 30, 2023, with approximately 20.7 million square feet located in 30 states and Washington, D.C. In 2023, OPI was named as an Energy Star® Partner of the Year for the sixth consecutive year. OPI is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with approximately $36 billion in assets under management as of September 30, 2023, and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. OPI is headquartered in Newton, MA. For more information, visit opireit.com.
WARNING CONCERNING FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. These forward-looking statements are based upon OPI’s present intent, beliefs and expectations, but these statements and the implications of these statements are not guaranteed to occur and may not occur for various reasons, some of which are beyond OPI’s control. For example:
- In this press release, OPI states that it is reducing its regular quarterly distribution to increase liquidity and financial flexibility when addressing future leasing costs, capital expenditures and debt maturities. However, reducing OPI’s dividend may not meaningfully increase OPI’s financial flexibility when addressing these activities in the future.
- In this press release, OPI states that its regular quarterly cash distribution rate is $0.01 per share per quarter or $0.04 per share per year. OPI’s Board of Trustees considers many factors when setting or resetting OPI’s distribution rate, including OPI’s historical and projected income, normalized funds from operations, cash available for distribution, the then current and expected needs and availability of cash to pay OPI’s obligations and fund its investments, distributions which may be required to be paid to maintain OPI’s qualification for taxation as a REIT and other factors deemed relevant by OPI’s Board of Trustees. Accordingly, future distributions to OPI’s shareholders may be increased or decreased and OPI cannot be sure as to the rate at which future distributions will be paid.
You should not place undue reliance upon forward-looking statements.
Except as required by law, OPI does not intend to update or change any forward-looking statements as a result of new information, future events or otherwise.
A Maryland Real Estate Investment Trust with transferable shares of beneficial interest listed on the Nasdaq.
No shareholder, Trustee or officer is personally liable for any act or obligation of the Trust.
